electric car tax form

Electric cars are a variety of electric vehicle (EV). All revisions are available at www.irs.gov/Form8834. The federal electric car tax credit applies to both all-electric vehicles and plug-in hybrid vehicles, and the actual amount you can claim varies based on car model. Instructions for Form … After that (Part III, assuming the car was not a business investment), you’ll go through the process of subtracting the credit from your taxes owed on Form 1040, line 47.. Hopefully, that number exceeds $7,500 for the tax year. Go to www.irs.gov/Form8936 for instructions and the latest information. They include a detailed description of what vehicles qualify for the credit. How to claim the electric car tax credit.

Current Revision Form 8936 The credit amount will vary based on the capacity of the battery used to power the vehicle. In order to take the credit, you must file IRS Form … Your state may also offer tax credits, so consult your tax pro before making any filings. All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. 4 Once you purchase your car, you’ll simply file form 8936 with your tax returns. With the vehicle identification number (VIN) and certificate from the dealership, the first part will be easy. Purpose of Form Use Form 8834 to claim any qualified electric vehicle passive Use Form 8936 to figure your credit for qualified plug-in electric drive motor vehicles you placed in service during your tax year. You can claim the electric vehicle tax credit using IRS Form 8936. If you purchased a new vehicle that runs on electricity drawn from a plug-in rechargeable battery, you may be eligible to claim the qualified plug-in electric drive motor vehicle tax credit, which can reduce your tax bill. Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles Federal Tax Credit Up To $7,500! For one, as more cars become electric, the government loses more and more in fuel duty. Luckily, none of the eligible plug-in cars have reached that 200,000 mark yet, so your tax credit will mostly be based on which electric vehicle you decide to purchase. Use prior revisions of this form for earlier tax years. Also use Form 8936 to figure your credit for certain qualified two- or three-wheeled plug-in electric vehicles. The amount of the credit available has nothing to do with a vehicle’s range, price, or performance. Use Form 8936 to figure your credit for qualified plug-in electric drive motor vehicles you placed in service during your tax year. Summary of Electric Car Tax Benefits. Tax credits for electric vehicles have been a major boon for the car industry, and a big reason why more car companies have entered into this technology. Introduced in 2002, company-car tax applies to cars bought by employers for their employees' private use.